Commerce Commission review shows improvement in electricity asset management planning

Electricity distribution businesses (EDBs) have made real progress towards best practice in asset management planning, Commerce Commission Deputy Chair, Sue Begg said today. The Commission released a review of asset management plans disclosed by the EDBs for the period beginning 1 April 2011.

This year the Commission’s review assessed the three disclosure areas identified in the 2009 review as having relatively weak compliance: service levels, network development planning, and expenditure forecasts, reconciliations and assumptions.

“The results showed marked improvements in the asset management plans prepared by EDBs since the 2009 review”, said Commerce Commission Deputy Chair, Sue Begg. Of the 28 businesses whose asset management plans were reviewed, 21 showed an improved disclosure rating and 10 EBDs exceeded the highest average rating achieved in 2009,” said Ms Begg.

Key results from this year’s review included:

• the top performers were Top Energy, Centralines and The Lines Company;
• the EDBs who made the most significant gains from the 2009 review were Top Energy, Northpower and Vector; and 
• the EDBs with the greatest room for improvement were The Power Company, Electricity Invercargill and Network Waitaki.

“In future years the Commission intends to look more closely at the quality of the planning
processes as well as making sure that compliance with public disclosure requirements is
maintained,” Ms Begg said.

The Commission is currently reviewing the information disclosure requirements for EDBs.

As part of the review, the Commission is considering what information is required to assess the quality of asset management.